DB: Writedowns Continue But Profit Returns, Rebound Possible

Deutsche Bank in a profitable first quarter took another 1.0 billion euros ($1.3 billion) in partially mortgage-related sales and trading writedowns as well as a 500 million euro ($663 million) impairment charge on a resort and casino property and said it may see a rebound in its fortunes in the medium term. DB's total debt sales and trading markdowns were dominated by provisions against the mononline insurance segment. There were 1.4 billion euros ($1.9 billion) of writedowns in this category during the same period a year ago. During last year's first quarter, these were dominated by exposures to residential mortgage-backed securities and commercial real estate loans. The company generated 1.2 billion euros ($1.6 billion) in net income in the first quarter, up from a net loss of 141 million euros ($187 million) during the same period a year ago.